I'd keep it and wait until the other rooms are done before deciding which way to go on updating it. Don't get rid of it though--little details like that are why 50s houses are great!

I'd keep it for the time being. You can always change/tear it out later. Not so easy to put it back after it's gone.

As others said, leave it for now. You have alot of options with an inset like that and it's all good! If you kitchen ends up more contemporary, you can do all open glass shelving inset into the opening. More traditional, leave the wood. Perhaps you can even use doors that match the kitchen for the bottom of the hutch. Possibilities... limitless.

Get extra hardware that matches the kitchen and decide later about whether to paint or stain. I think it is a nice feature to have.

How much DIY is your family capable of? Is this unit made of maple? If you can order lower doors to match the new kitchen for a reasonable cost and if this would make you feel less at the mercy of the original builder, such a change wouldn't be a big deal. If this wood matches woodwork in other rooms, halls, etc. the suggestion to get new hardware to complement that other woodwork will give it a new feeling. Although the photos of your family are probably very comforting, try rearranging the contents of the display and rotating some of the photos to another spot and take advantage of the existing glass doors to display something that would give the spot a different and new-to-you aspect. A collection? books less than a foot in depth? Just a couple photos and a special object? Dried flowers in a fabulous vase? The reason for this suggestion is to help you detach from the "same old same old" that clings to the spot and thwarts new thinking so that you can make a good decision.

Similarly, is there a way to introduce a color that dominates in the living room so that you can get used to this color in the display--such as wallpaper or a painted hunk of posterboard or something?

I envy you this unit. We have a similar stairwell closet along a hall, a stupid deep, narrow, inaccessible coat closet with a sloped floor over the basement stairway. If only the builder had been like yours and designed for us a shelf cupboard on the opposite side of the stairs below. I've even considered knocking into the wall in order to get one!

Ditto florantha. First thing I'd change is the photos. If you really want to keep them there, stop thinking of them as individual items and think of them as a group. Pare down the number. Copy them all in black and white (they're too different otherwise) and put them all in matching frames. You might then be able to put something in front of them to add color.

Not saying you have to keep the hutch as-is, but the first thing I'd try changing is the one that's easiest to change.

Well poop! I think that's a great spot for photos! But taking them out just to get a new feel for the hutch isn't a bad idea. Just don't rush into anything permanent!

I like the ideas of matching the wood to your new kitchen style and hardware. Or, you might want to paint the whole thing white, so it blends into the wall. It's a great feature, so I wouldn't do a thing, until you finish the other rooms :)

Thank you all for your input. I'm happy to put this decision off until the kitchen is finished! And yes, I definitely need to do some rearranging in the hutch. Unfortunately the hutch matches my bedroom doors, bathroom door and closet doors. But that's a different time, different day. There is a lot of work to do in this house in every room. Sometimes I don't know where to start. I guess I'm starting in the kitchen! Thanks again everyone!

Just to throw another idea out there if you do decide to get rid of the hutch, you could add shelving and full length top to bottom doors to the recessed space and use it as extra pantry storage.